But Google should also fear Microsoft. The software giant might still be trying
to gain its footing online, but it's a massive company that won't quit. And in
the past, when Microsoft faced uncertain odds, it did a fine job of overcoming
them. Rest assured, the software giant won't simply roll over.

Let's take a look at exactly why Google should still fear Microsoft.

1. It's huge

Google might be a massive company with an impressive stock price, but Microsoft
is still a monstrosity in the tech industry. The company generates billions
of dollars in profit each quarter. It's the most powerful software developer in
the entire industry. And it has the coffers to invest in just about anything it
wants. In the business world, money can solve many issues. And Microsoft has
the money.

2. Google is a newbie

Although Google is trying to make its way into the software space with
applications such as Chrome and Android, it has yet to gain a real footing. For
now, Internet Explorer still reigns supreme against Chrome in the browser
market. And although it's gaining steam, Android has yet to establish itself in
the mobile space. Chrome OS is also very much a question mark. All
the while, it's Microsoft that Google is looking up at.

3. The Yahoo deal matters

Although Microsoft's
partnership with Yahoo won't help it rule the search-engine space, it does
improve its chances of getting closer to Google. Thanks to the Yahoo pact,
Microsoft could soon make the search market a two-service competition.
Undoubtedly, those looking to advertise will take notice. The stronger
Microsoft's position is in search, the more Google should consider the possible
ramifications of Microsoft getting too big.

4. Windows is still powerful

It might not garner the kind of respect it once did, but Windows is still an extremely important application.
It runs on the vast majority of computers. It's the top enterprise operating
system. Most users are loath to switch to something new. Realizing that,
Google, which is investing considerable cash in Chrome OS, should be concerned.
How will it take out Windows? How will it see a return on its investment? The
more people enjoy using Windows 7, the worse it will be for Google and Chrome
OS.

5. Microsoft is improving

A few years ago, I would have been hard-pressed to say that Microsoft
really understands its users. It seemed that, for a while, the company was
content to maintain status quo while other firms, like Google, set the new pace
in the industry. I don't think that's true anymore. Today, Microsoft seems to
understand what its users want. Nowhere is that more evident than in Windows 7 and Bing.
Google isn't the only company that understands its users any longer.

Bing Is Pretty Good

6. Bing is pretty good

Microsoft Live wasn't all that great. But if users check out Bing, I think
they'll like what they find. The search provides most of the same results users
will find on Google. And thanks to extras such as visual search, it does add a few
add-ons that users won't find in Google Search. There's a reason why Bing has
gained some ground in the search-engine space -- it's pretty good.

Google might be doing well when it comes to consumers, but the company is
still lagging far behind in the enterprise. Its mobile platform has yet to
captivate that space. Google Docs doesn't provide enough value to entice
enterprise users to switch from Microsoft Office. Without those two key
elements, the company can't expect to do much with either service.

9. Microsoft knows the future is the
cloud too

Google might know that the future will be coming is on the Internet, but I
believe that Microsoft understands that as well. The software giant has made it
clear that it plans on combating Google on the Web. It's starting to bring more
of its services (including Office) to the Internet. Microsoft is very much a
part of the cloud-computing trend.

10. Windows 7 is the X factor

As useless as Windows Vista might have been, Windows 7 is a different
story. That operating system is currently being enjoyed by Windows users who
see it for what it is: the operating system that Vista should have been. The
more success Windows 7 enjoys, the more trouble Google will have trying to
capitalize on the software market. Google knows that. And so does Microsoft.

Google can't get too complacent. Microsoft is very much a part of this battle.